Pre-TAX profits at FirstGroup rose 31 per cent to £326.4million in the year to March 31.

The transport company said its UK bus arm had increased market share with operating profits up 9.8 per cent to £134m.

The US division made £2.7billion in revenues and delivered a spectacular 72.5 per cent profits jump to £294.6m at constant currency rates.

Rail profits slipped back to £94.2m as revenue growth stalled.

First has not been immune from the impact of the economic downturn and is cutting 1,100 jobs.

Chief executive Sir Moir Lockhead was confident about the year. He said: "While it is still early in the new financial year, overall the group has continued to trade well and broadly in line with expectations."